UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 15939 / October 19, 1998
CALIFORNIA v. MATTHEW PETER BOWIN, Santa Cruz County Superior
Court, No. S8-08719.
On October 2, 1998, Matthew Peter Bowin ("Bowin") was
convicted of 54 felony counts, including fraudulently obtaining
money in connection with the sale of securities. Bowin was
convicted after a three-week criminal jury trial in Santa Cruz
County, California, prosecuted by the District Attorney for Santa
Cruz County. Bowin, the chairman, president, and chief executive
officer of Interactive Products and Services ("IPS"), was charged
with conducting a fraudulent initial public offering over the
Internet between November 1996 and July 1997. Sentencing is
currently scheduled for October 30, 1998 before the Honorable
Thomas Kelly.
The Securities and Exchange Commission ("Commission")
previously filed a civil complaint against Bowin and IPS on April
8, 1998, charging violations of the antifraud provisions of the
federal securities laws. The Commission's action is currently
pending in the United States District Court for the Northern
District of California, Case No. C-98-20313 (PVT).
The IPS stock offering was one of the first public offerings
conducted entirely over the Internet. Bowin raised approximately
$190,000 from about 150 investors nationwide. The Commission's
complaint alleges that Bowin made numerous misrepresentations to
investors and misappropriated investors' funds for personal use.
Investors are advised to read the SEC's "Cyberspace" Alert
before purchasing any investment promoted on the Internet. The
free publication, which alerts investors to the telltale signs of
online investment fraud, is available on the Investor Assistance
and Complaints link of the SEC's Home Page on the World Wide Web
. It can also be obtained by calling 800-SEC-0330.
For additional information see Litigation Release No. 15700
(April 8, 1998).